PNB fraud: Will know reasons for passport suspension after MEA sends showcause, Nirav Modi’s counsel

Nidhi Chugh
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PNB fraud: Interpol issues red corner notice against Nirav Modi

The Red Corner Notice was issued after a rquest by the CBI.

21:27 Speaking to CNN News18, Nirav Modi counsel Vijay Aggarwal has said that his client Nirav Modi’s passport has been suspended.

“When a passport is suspended, a show cause notice is sent by the Ministry of External Affairs (MEA), once we receive that we will know the reasons behind suspension,” he added.

21:05 Vijay Aggarwal, Counsel for Kavita Mankikar has said that Kavita Mankikar was arrested illegally by the CBI, Moneycontrol’s Tarun Sharma has reported.

Kavita Mankikar was arrested by a male police officer, after evening hours which is not legal, her counsel has said.

A female accused should be arrested by a female officers and should not be arrested after evening hours until special circumstance, Aggarwal has said.

21:03 Moneycontrol’s Tarun Sharma has reported that Niten Shahi and Kapil Khandelwal have been sent to police custody till March 5, according to CBI.

CBI has also said that Rajesh Jindal was at the bank from 2009-2011.

During the investigations, Gokulnath Shetty said that LoUs were issued without any cash advance prior to his tenure.

19:48 Moneycontrol’s Tarun Sharma reports that the CBI has said that Niten Shahi, Manager, Gitanjali Group, was instrumental in giving applications to Brady House Branch for availing LoUs and public servants have not recorded the same entries in the CBUs.

Swift messages were sent on the orders of Niten Shahi, according to the CBI.

The investigative body has said that Kapil Khandelwal being the CFO of Nakshatra Group and Gitanjali Group was privy to all the transactions with PNB. CBI said that they need to trace how the fraud happened and to trail the funds.

Kapil Khandelwal was in direct touch of the proprietor if the main accused Mehul Choksi, the investigative body has said.

19:28 Karnataka CM Siddaramaiah, BS Yeddyurappa in war of words on Twitter over PNB scam

Karnataka BJP chief BS Yeddyurappa today accused Chief Minister Siddaramaiah of allowing Mehul Choksi, a key accused in the PNB fraud case to escape from Karnataka, triggering a war of words on Twitter between them.

Choksi, the managing director of the 'Gitanjali Gems', is also the maternal uncle of billionaire jeweller Nirav Modi, who has been blamed for the colossal Punjab National Bank fraud.

The BJP leader tweeted, "Well well, this 'special someone' (who abandoned Mysuru), did allow the very same fugitive's uncle #ChoksiScam,to escape from Karnataka by flouting the Civil Court Order way back in 2015. This is none other than our own #SleepingChowkidar @siddarmaiah. Is it part of #10PercentCM ?"

Yeddyurappa picked up the term 'who abandoned Mysuru'  from remarks of Prime Minister Narendra Modi, who, while attacking Siddaramaiah at a public rally in Mysuru on Monday, had said the cultural city was known for mannerism which a person forgot after reaching Bengaluru. (PTI)

18:56 Congress seeks Arun Jaitley's resignation on moral grounds

Senior Congress leader Prithviraj Chavan on Wednesday demanded Union Finance Minister Arun Jaitley's resignation on "moral grounds" in connection with the alleged fraud at the Punjab National Bank (PNB), which he said had raised a "big question mark" on the country's banking system.

Chavan alleged that Nirav Modi, the billionaire diamantaire who is the alleged kingpin of the Rs 11,400-crore fraud, was given a "safe passage" to leave the country by the BJP-led central government, "like it did for Vijay Mallya and Lalit Modi". (PTI)

17:55 CBI has sealed Nirav Modi's farmhouse in Alibaug near Mumbai in relation to the PNB scam.

17:12 National Organisation of Bank Workers (NOBW) has claimed that close to 18,000 employees have been transferred following the PNB scam, according to CNN News18.

This comes after the CVC had asked for the transfer of all the officials who have served for 3 years and clerks who have served more than 5 years.

16:19 Enforcement Directorate (ED) officials have raided three more jewellery stores in Bhubaneswar, Odisha in connection with Rs 11,000 crore Nirav Modi PNB fraud case, according to local media.

15:29 Around 10 PNB officials called for questioning at the CBI office in Mumbai, reports CNN-News18.

14:52 Will take legal recourse to restart our operations: Nirav Modi to employees

According to CNBC TV18, Nirav Modi has told his colleagues that he has written to the banks requesting them to permit clearance of dues of employees and that he is committed to paying their past dues once he has access to stocks and bank accounts

‘It would be right on your part to look for other career opportunities,’ Nirav Modi has told his employees.

‘Not in a position to pay your dues, considering recent developments,’ he has said, adding that he ‘will take legal recourse to restart our operations’.

14:35 Nirav Modi sacks employees across verticals, to shut shop

Nirav Modi has sacked employees across all verticals, according to CNBC TV18. Nirav Modi has also asked employees to collect relieving letters by February end as the firm will be shutting down all shops across the country.

Nirav Modi has told his colleagues that ‘near future seems a little uncertain’ and that he is ‘concerned about the fairness of the processes that are being followed’.

He has said also said that he is ‘concerned at the speed at with which events are moving.'

He has also told employees that he is taking ‘this moment to acknowledge your immense support in building this company,’ adding that the ‘organisation is suffering due to recent allegations filed by Punjab National Bank (PNB)’.

12:02 Supreme Court adjourns hearing to March 16 as Centre opposes PIL, says report

Supreme Court has adjourned the hearing to March 16, reports ANI. The Centre opposed PIL seeking independent investigation and deportation of Nirav Modi. The petitioner Vineet Dhanda told SC that the whole country is watching and that the SC must at least issue notice to the Centre as the government has done nothing in the past in a similar case relating to Vijay Mallya.


Banks were confidentially warned thrice against misuse of SWIFT: RBI

Amidst the multi-agency probe into India's biggest banking scam, RBI today said it had "confidentially" cautioned banks thrice since August 2016 on the risks arising from the malicious use of the SWIFT system and has decided to set up a panel to look into the rising incidence of frauds.

State-owned Punjab National Bank (PNB) was defrauded of Rs 11,400 crore allegedly by firms related to jewellery designer Nirav Modi and Mehul Choksi through fraudulent Letters of Undertaking (LoUs).


After Priyanka Chopra, Kangana Ranaut and Bipasha Basu accuse Gitanjali of not paying full fees

Kangana Ranaut and Bipasha Basu have accused the Nirav Modi-led firm of not paying full fees and breaching the contract, according to a report by The Economic Times.

Last week, Priyanka Chopra, who is the global ambassador for the brand, Nirav Modi, sued him for not paying the full fees.


CBI arrests PNB's GM-rank officer in fraud case

The CBI has arrested a General Manager-rank officer of the Punjab National Bank posted at the bank's head office in New Delhi in connection with the alleged Rs 11,400-crore fraud involving billionaire jewellers Nirav Modi and his uncle Mehul Choksi, officials told PTI.

Rajesh Jindal, who was the head of the Brady House, Mumbai, branch of the bank during 2009-11, was taken into custody on Tuesday night, they said. It is alleged that the issuance of Letters of Undertaking (LOUs) to Nirav Modi group firms without sanctioned limits started during his tenure. Jindal is presently posted as GM, Credit, PNB Head Office, New Delhi.


Recap of the case

What happened?

Over Rs 11,400 crore was siphoned by Punjab National Bank (PNB) issuing LoUs to top Nirav Modi. Bank officials and major diamond merchant Nirav Modi and his accomplices were involved in this case. The bank officials issued the letters to the concerned persons who approached them. The fraud started in 2010, and was detected on  25 January 2018, according to PNB's MD and CEO Sunil Mehta.

What is the latest?

- Nirav Modi’s counsel has said that CBI has written to the court saying that outstanding amount is not Rs 11,000 crore but is Rs 6,000 crore, reports CNBC-TV18. The counsel also said that PNB was aware of the outstanding loans.

- CBI arrested 5 more people including Gitanjali Group CFO, Firestar International CFO. This is in addition to the 6 who had been arrested earlier. Out of the 11 arrested, some are PNB officials and some are directly linked to Nirav Modi.

- Nirav Modi wrote to PNB where he said they should not have gone public with the case and that it could have been solved between the two parties.He also wrote to his employees saying that he will not be able to recover their dues.

- Nirav Modi's lawyer Vijay Aggarwal told ANI that the case will collapse like the 2G and Bofors case

- Nirav Modi's counsel said that the total amount owed is actually Rs 6,000 crore and not Rs 11,400 crore.

-Supreme Court has agreed to hear the plea filed by Vineet Dhanda tomorrow. The PIL seeks for deportation of Nirav Modi, Mehul Choksi for three years.

- The Reserve Bank of India (RBI) will set up an expert committee to address the rising incidences of frauds and divergences in classification of bad loans.

- On the case, Finance Minister Arun Jaitley blames the banks, the auditors and other authorities.